Australia Axes ‘Golden Visa’ Program: A Shift in Immigration Priorities

CANBERRA, Australia In a bold move that’s turning heads worldwide, Australia has scrapped its “golden visa” program, officially known as the Significant Investor Visa (SIV), ending a decade-long experiment to attract wealthy foreigners with promises of residency. Announced on January 22, 2024, the decision reflects growing concerns that the scheme, which granted permanent residency for investments of at least AUD 5 million, failed to deliver economic benefits and became a haven for questionable wealth. This shift signals a new direction for Australia’s immigration policy and could ripple across global migration trends, as nations rethink how to balance economic gain with integrity.

Launched in 2012, the SIV aimed to draw capital to boost innovation and job creation. Instead, it drew criticism for prioritizing the rich over skilled migrants and enabling money laundering. Reports showed that 85% of the roughly 2,500 visas issued went to Chinese nationals, with some linked to corrupt officials or dubious funds. “The program didn’t spark the economic growth we hoped for,” said Home Affairs Minister Clare O’Neil in a statement on January 22, 2024. “It’s time to focus on talent and skills, not just deep pockets.” Posts on X echoed this sentiment, with users like

Bill Browder praising the move for closing a loophole that allowed “dodgy people from repressive regimes” to launder money and reputations.

The decision comes as Australia tightens its immigration system, prioritizing skilled workers and students who contribute to long-term growth. The SIV’s closure aligns with a broader review of migration policies, including stricter rules for international students and low-skilled workers, as the government grapples with housing shortages and public pressure to curb inflows. In 2023, net migration hit a record 510,000, fueling debates over sustainability. “Australia’s sending a message: we want people who build our future, not just buy their way in,” said Sarah Lim, a migration policy analyst in Sydney.

Globally, the move could prompt other nations to rethink similar “cash-for-residency” schemes. Countries like the U.S., Canada, and Portugal run comparable programs, such as the U.S. EB-5 visa, which faces similar scrutiny for attracting illicit funds. Posts on X noted Canada’s “startup visa” as a parallel, with critics arguing it risks similar abuses. The U.K. ended its own investor visa in 2022, citing security concerns, and New Zealand followed suit in 2023. “These programs often benefit the ultra-rich while doing little for the average citizen,” said James Walsh, a global migration expert. “Australia’s exit could push others to follow.”

At home, the decision has stirred mixed reactions. Business groups worry it could deter legitimate investors, especially in real estate and startups, where SIV funds over AUD 13 billion since 2012 made a mark. Sydney realtor Michael Chen, who worked with SIV applicants, said, “Some clients brought real value, but the system’s flaws overshadowed that.” Meanwhile, locals like Melbourne teacher Aisha Khan cheer the change. “Why should millionaires jump the queue when nurses and engineers struggle to get in?” she asked during a community forum in February 2024.

The end of the golden visa also reflects Australia’s shifting stance toward China, its top trading partner but a growing geopolitical rival. With 85% of SIV holders from China, the program’s closure signals caution amid concerns over Beijing’s influence. Yet, Australia must tread carefully to avoid alienating Chinese investors who fuel sectors like mining and education.

Looking ahead, Australia plans to redirect migration pathways toward skilled professionals, with a focus on tech and healthcare. The government is also boosting oversight to prevent fraud in other visa categories. For the global migration landscape, Australia’s move could spark a domino effect, pushing countries to prioritize transparency over quick cash. As nations grapple with wealth inequality and security risks, the golden visa’s shine is fading. Australia’s bold step may well set the tone for a new era of immigration one where merit, not money, opens the door.